HRM Issues in an Insurance Company
The Cases discussed below are related to Human Resource Management, experienced by the author as a human resource manager in an Australian Health Insurance firm. Each case has some distinct features typical of HR function and are addressed by the author using the relevant theories and practices on the issues. The cases are presented below
Scenario 1
This case represents a situation where a young male employee GS has been promoted as the manager in a regional office which is comparatively smaller than his previous location. His team consists of mainly part time female members, with similar and educational backgrounds and having family and care giving responsibilities. His predecessor BN who has retired, had enjoyed a good rapport with the members and taken an active interest in the personal welfare of team members. GS has the responsibility of implementing a new customer service charter intended to contribute to the profitability through creation and maintenance of strong work teams for which he seeks advice from the author
Theories on team behavior for better team dynamics
The theories of team behavior that might help GS in executing his new role are the Tuckman’s model, Hackman’s theory and social facilitation theory, a brief description of the applications of each are attempted below. A combination of the models will succeed in improving the team performance.
Tuckman’s model suggests that teams may be formed through 4 stages; Forming, Storming. Norming and performing (Tuckman, 1965, p.384). Forming is the process of grouping together for a common purpose. Storming refers the process of presentation of ideas, debating and letting down barriers for better interaction. Norming is setting down team behavior norms while performing is the process of contributing towards a common goal. Since a team already exists, the first step has been completed. GS can initiate the process of storming by inviting suggestions from group members in an informal group discussion where members may agree or disagree and shed formal barriers to create more effective dynamics. Once members are more comfortable with each other they can develop norms or procedures of reporting, communicating, motivating and dealing with customers. The common goal of increasing profitability may be achieved by increasing sales by a consolidated effort from team members.
Hackman’s theory is based on the fact that teams are successful when their goals are realized through combined efforts, future directions of performance are established and a sense of satisfaction is found in belongingness (Kozlowski and Bell, 2003). According to Hackman, these elements can be achieved by (1) being a real team having a common goal, clear responsibilities and belonging, (2)having a compelling direction which enables them to follow a goal, (3)a structure that distinguishes leadership and individual roles, (4) a supportive context that rewards team and individual performances, provides the necessary infrastructure for performing tasks and gives necessary inputs wherever necessary and (5) Expert Coaching that guides the members and motivates them to perform as a team for integrated results (Hackman, and Wageman, 2005, p.288). GS can present the goal as gaining customer satisfaction and provide specific guidelines for achieving the goal. As a team leader, he may delegate responsibilities to the members according to their individual skills He can design rewarding systems for motivating the members and arrange for expert coaching and training facilities for imparting knowledge and skills to enhance performance. Facilitating coaching for team members from experts as well as from members of top management will further help in implementing the customer satisfaction charter.
Social facilitation theory is based on the concept that presence of others can improve the performance of individuals through motivation (Woodman, Sawyer and Griffin, 1993. p.295). When individuals work in a team they get the opportunity to present their competencies in a group and this elevates the level of their performance. This can be related to Maslow’s fourth tier in the need hierarchy where the need for self- esteem inspires individual’s performance (Maslow, 1943, p.370). This theory can be used by GS to motivate the team members for obtaining better performances.
Practical methods for implementing the charter for customer satisfaction
GS should use the Maslow’s need theory to motivate members to perform well. This can be achieved through devising rewards for performing above a stipulated level, for encouraging both individual and team improvements in performances. Performances can also be measured through customer feedback which should be communicated to the members for self- assessment (McIntyre and Salas, 1995, 14).
He should formulate guidelines to direct performances such as promptness of service, addressing customer complaints, maintaining an openness within the team, restrain from misleading the customer and promoting ethical behavior (Anderson, et al, 1997 139). The matters related to claims and reimbursements should be attended to promptly so that the customer is not inconvenienced (Zairi, 2000, p.332). GS should initiate a more participative leadership by inviting suggestions from the team members and designing a structure where each member is delegated responsibility according to his capabilities (Dionne, et al., 2004, 189).
Scenario 2
This case concerns an employee NF in the metropolitan office whose performance has shown a decline in the last few months. He has been exhibiting negative organizational behavior like absenteeism, lateness and a general disinterest in work. This behavior is surprising because NF has been rewarded before for his individual performance. It has been observed that he has been behaving negatively since individual reward system was replaced by team rewards.
Explanation of NF’s behavior using the concept of Psychological Contract
On the basis of the psychological contract, it can be inferred that NF’s behavior can be attributed to his dissatisfaction because of lack of recognition for his individual performance (Turnley, et al; 2003, p.188). It was against the expectations of NF and his need of self-actualization. A psychological contract is a mutual understanding not expressed openly but accepted by the employer and employee. Since his previous efforts had been rewarded he had expected that this recognition of his performance would continue in the future also, hence abolition of individual performance rewards had not only disappointed him , it had also demoralized him (Pate, et al, 2003, p.559). NF felt that this contract was not honored when his individual efforts were not rewarded. This resulted in his expressing his displeasure at the new system by indulging in negative behavior (Robinson, and Rousseau, 1994, p.247). He reacted by being absent from work and not putting enough efforts. According to (Nicholson and Johns 1985, 389), absenteeism and a disinclination to work often result from management’s failure to live up to the expectations of the employees.
Offering Solution to the problem
NF’s performance can be restored to his original standards by assuring him that the employers will reward his performance and give him due recognition for his efforts. This will require revision of the new system where individual efforts must be rewarded along with team performance. NF should be motivated to perform like he originally did by recognizing his initiatives. (Quinn, et al 1998, p.97), has remarked that compensation for individual performance significantly improves it. This can be accomplished by designing individual reward system, monetary or in kind, providing him with customer feedback and acknowledging his performance publicly in newsletters and websites. Public recognition is in compliance with the social facilitation theory and is an effective method for motivating individuals (Wiley, 1997, p.278) Performances should be evaluated by fixing a benchmark which in this case may be the number of customers serviced during a predetermined period, rating system by the customers and performance appraisal systems. Although it may not be management’s intention to disregard NF’s performance but to avoid comparison between performances of team members (Campbell, et al, 1998, p.131). Evaluation of individual performances develops trust in management’s intention to appreciate extraordinary performance (Mayer, and Davis, 1999. p.123). NF had displayed an exemplary performance before and it would be indeed unfortunate to lose a good employee because of his feeling that the psychological contract has been breached by the employers (Deery, et al, 2006, p.166).
Scenario 3
This case concerns BD an employee with PT for 11 years who has been brought under the abandonment of employment agreement because he had been absent from work without providing any prior notice or information about his absence to the concerned authorities, Although he responded to the letter sent to him by providing an explanation for his absence the author is in dilemma whether he should accept it as a reasonable one because it reflects a weak attitude and is not justifiable. He had met with an accident and although not injured physically was under severe pressure as his car had been damaged irreparably. He had resorted to heavy drinking and ended up in an alcoholic bender. According to the contract his behavior makes him liable to termination but due to his track record the author has second thoughts.
Explanation of Author’s reasoning
Another factor that supported the author’s rationale was the fact that BD had not lied to him and not made up some plausible excuse for his absence considering the fact that he had indeed been in an accident. (Bucci, J.J., 2011) studied the redemptive behavior of managers and came to the conclusion that employees deserved a second chance on the discretion of the manager. However, he did not want to give BD the impression that his behavior was being condoned and so he issued a warning to BD that this sort of aberration will not be tolerated in the future. (Sekerka and Zolin, 2007, p.226) has observed that increased work pressures and scarcity of resources may be responsible for bending rules but in the circumstances BD had shown an exemplary performance hitherto and losing him may not be advisable to the firm. (Stone, M., 2002, p.280) advocates that compassion and forgiveness in workplace promotes better and more fulfilling organizational environment.
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